• Blue_Morpho@lemmy.world
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    2 months ago

    Valuation is only useful for an exit strategy. They’ve already IPO’d. If they don’t show profit, the stock will collapse.

    • hddsx
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      2 months ago

      Counterpoint: Tesla before they made a profit

        • hddsx
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          2 months ago

          Their stock didn’t crater when they didn’t return a profit

          • Blue_Morpho@lemmy.world
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            2 months ago

            They got money from the IPO. The money let them build a plant to sell cars at a profit. In 2016, they had burned through the IPO money and weren’t selling the model 3 yet. Musk later admitted they were months from bankruptcy. The stock price was around $12 a share.

            Selling cars at a profit is what caused their stock price to rise.

          • Blue_Morpho@lemmy.world
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            2 months ago

            And if no one bought Nitro or advertised games Discord would run out of money.

            That’s the same as using Roblox without giving them any money.

            • Wooki@lemmy.world
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              2 months ago

              and if no one bought.

              This isnt speculation here, they do, and they make A LOT from nitro subscriptions and server boosts.

              • Blue_Morpho@lemmy.world
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                2 months ago

                Yes but if everyone used their services without paying, they would go bankrupt. Just like using Roblox without paying costs them money.

                • Wooki@lemmy.world
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                  2 months ago

                  Don’t forget every user generates a base income, for example from visiting and using boosted servers (other users pay), ad insights and other data mining